A charitable gift annuity is a contract between you and Suffolk University. In exchange for your irrevocable transfer of cash or securities, Suffolk agrees to pay you and/or your spouse a fixed dollar amount annually for life. The size of the payments is based on the age of the beneficiaries—the older the beneficiaries, the larger the payments. A portion of your gift is tax deductible. In addition, some of the income received will be tax-free. If you use long-term, appreciated securities to purchase the annuity, the capital gains tax reportable from the sale of the securities can be reduced and spread over your life expectancy.

Jay M.’s charitable gift annuity

Jay M., 75, was ready to cash in and reinvest some mutual funds to provide a steady stream of income, but hesitated because the tax on the capital gain would be quite high. Jay, a Suffolk Law alumnus, decided to transfer his mutual funds, worth $100,000, to Suffolk University Law School to endow the Jay M. Centennial Scholarship Fund in exchange for a one-life gift annuity.

This allowed Jay to avoid the capital gains tax on the profit, and to receive annual income of $7,100 from the gift. A portion of each payment to Jay is tax free, a portion taxed at the capital gain rate, and the balance is taxed at Jay’s ordinary income tax rate.

This gift enabled Jay M. to:

• Increase his cash flow
• Have the security of guaranteeing his payments for life
• Reduce and defer capital gains tax
• Receive an income tax deduction
• Make a generous endowed gift to Suffolk University Law School

Please contact the Office of Advancement to learn more about charitable gift annuities.